Addus HomeCare Corporation (NASDAQ: ADUS) Investor Securities Class Action Lawsuit 03/26/2010

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Company Name(s): 
Addus HomeCare
Case Name: 
Addus HomeCare Shareholder Class Action Lawsuit 03/26/2010
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: ADUS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/26/2010
Class Period Begin: 
10/27/2009
Class Period End: 
03/18/2010
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
05/25/2010
Date Settled: 
07/21/2011
Settlement Amount: 
$3,000,000
Deadline to Participate in Settlement: 
08/17/2011
Summary: 

July 21, 2011 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

March 22, 2011 - The court preliminarily approved the settlement.

March 21, 2011 - Parties filed a stipulation of settlement.

September 20, 2010 - The defendants filed a motion to dismiss.

August 10, 2010 - The lead plaintiff filed an amended consolidated complaint.

June 1, 2010 - The lead plaintiff and lead counsel were appointed.

May 25, 2010 - A lead plaintiff motion was filed.

March 26, 2010 - An investor in shares of Addus HomeCare Corporation (NASDAQ: ADUS) filed a lawsuit in U.S. District Court for the Northern District of Illinois on against Addus HomeCare Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 27, 2009 and March 18, 2010.

The complaint was filed on behalf of all persons or entities who purchased Addus HomeCare Corporation (NASDAQ: ADUS) common stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Addus HomeCare Corporation’s October 27, 2009, initial public offering (the “IPO”).

The complaint alleges that Addus HomeCare Corporation and certain of its executive officers and/or directors violated federal securities laws, specifically Sections 11 and 15 of the Securities Exchange Act, by issuing in the Registration Statement and Prospectus materially false and misleading and/or omitting facts necessary to make the statements made not misleading. Then on March 18, 2010, after the market closed, Addus HomeCare Corporation reported its financial results for the fiscal fourth quarter and year ended December 31, 2009, and reported a fourth quarter net loss of $3.7 million, or $0.48 per share.

Addus HomeCare Corporation announced that its had to increase its bad debt reserve levels by $1.5 million, and that during the fourth quarter its Home Health revenues were short of internal forecasts due to a slowdown in admissions from its Integrated Services program due to the State of Illinois’ effort to develop new procedures for integrating care.

The following day, March 19, 2010, Addus HomeCare Corporation’s (NASDAQ: ADUS) stock price declined $2.60 per share to close at $6.30 per share, representing a cumulative decline of $3.70, or 37%, of the value of Addus HomeCare Corporation shares at the IPO price of $10 per share. Shares of Addus HomeCare Corporation (NASDAQ: ADUS) traded recently at $5.62 per share, down from $9.15 in November 2009, $9.72 per share in January 2010, and $8.90 per share on March 18, 2010.